Winter Session Concludes - Election Reform Bill Passes

Legislation changing the way Nova Scotia political parties are financed passed at the conclusion of the winter session of the Nova Scotia legislature today, Jan. 11.

Under amendments to the Members and Public Employees Disclosure Act, political donations will be subject to an annual maximum of $5,000 per party and political parties will get an annual grant tied to votes they receive in provincial elections.

"I made a commitment to Nova Scotians to reform election financing rules in this province and this bill opens the door to those positive changes," Premier MacDonald said.

The premier stated that the bill offers a balance ensuring that political parties cannot depend on large donations from any one person or organization, including private corporations and unions without placing the full burden on the backs of taxpayers.

Recognized political parties will receive annual public financing of $1.50 for each vote. During the transition to the new system, over the next two years, parties have the option of taking 90 cents per vote and a lump sum payment of $125,000 each.

Only residents of Nova Scotia can make donations, and donors exceeding the limit may be subject to a fine.

All four recognized political parties will receive payments in 2007, expected to total $745,000. One quarter of the amount will be paid in the 2006-07 fiscal year.

In addition to the contribution limits, the legislation contains numerous restrictions related to other sources of political financing, such as loans and trust funds.

The bill includes changes to the Income Tax Act that will adjust the tax credits for political donations. Smaller donations -- less than $1,000 -- will be encouraged by a 75 per cent tax credit.

The legislature also saw the passage of three private members' bills.